They say the first step is to admit you have a problem. America has a problem. Actually several - but they are all inter-related. Joel Klotkin does a good job of laying out some of the issues in this Slow Boat from China article.
Yes there is a supply chain issue. But having to wait on key components because the pandemic has upset the global shipping is just part of the problem. First companies adopted JIT (Just in Time) production policies to keep inventories low and boost the bottom line. Then companies moved production abroad because costs were lower and the "elites" of the coasts were preaching "globalization." All three of these issues are inter-related but are all solvable.
The first step is self-sufficiency. We were energy independent until the Biden Administration made some stupid decisions because of "optics." The increase in gas prices ($1-2 per gallon increases pretty much in every state) coupled with the worst inflation since Jimmy Carter has wiped out any wage gains made by the lower and middle classes in this country. Going back to the policies that made us energy independent in the first place is the first step.
Companies now realize that supply chain vulnerabilities are not worth the shrinking costs savings JIT and off-shoring provided. Moving production back home (or closer to home) is good business and good for the US economy as a whole.
"My name is America and I have an economics problem." "Hi America!" Now let's get onto the other steps toward economic recovery.
As long as the Democrats have control of Congress and the presidency, there are only two chances that the economy will improve...slim and none.
ReplyDeleteI'm an Independent but for the good of the country I'm hoping for a Republican takeover of the House and Senate in 2022.
ReplyDeleteLet's Go Brandon!